Yo Pit Crazies,

The VIX failed to hold its ground into Friday’s close as Apple Inc. (Ticker: AAPL) disappointed with its massive share buyback announcement. Despite the $100 billion repurchase, the stock closed below $205, ending the day down 4%. Investors saw the move as a signal that Apple may be running out of steam on the innovation front. Much like Boeing Corp (Ticker: BA)’s ill-timed 2019 buyback, this one could also be remembered as one of the most poorly timed in history.

Despite my lack of affection for AAPL, the real story is that the VIX ended in Zone 3 for the first time since Liberation Day. It seems traders are starting to buy into some of the chatter coming out of the White House and China.

China making overtures on trade is the biggest deal

​​China starts reaching out on Fentanyl exports, and suddenly the market gaps up another 0.5% in no time. A 4% drop in AAPL gets brushed aside when the broader market is rallying. The focus remains on tariffs and potential deals—any hint of progress keeps pushing stocks higher. We’ve just broken through a key pre-Liberation Day resistance level on the Standard and Poor’s 500 Trust ETF (Ticker: SPY).